As late as July 28, Kannagi Finance had $2.13 million of user funds remaining in its records. On July 29, the TVL of this DeFi project dropped to almost zero, accordingly users lost over $2 million in various cryptocurrencies. The project code is not open source and has not been vetted by the community.
However, Kannagi Finance’s smart contracts have previously been audited by SolidProof. The inspection took place on June 6. SolidProof was founded in 2020 with the backing of several companies in the cryptocurrency industry and has been credible.
In addition to the website, the project’s developers have deleted their Twitter account. User funds appeared to be withdrawn to several third-party addresses.
In late June, a similar act was committed by
by the developers of Chibi Finance. They were able to withdraw over $1 million in client funds. In March, the AI-powered DeFi Applications team Harvest Keeper withdrew
about $1 million in user funds.